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Health Care Reform Where we’ve been Where we are Where we’re going

Health Care Reform Where we’ve been Where we are Where we’re going. Medicare. Inpatient Hospital/ SNF/HHA/Hospice Services. Part A. Physician/Non- Physician Practitioner/ Ancillary Suppliers/ Outpatient Hospital Services. Prescription Drug Coverage. Part D. Part B. Part C.

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Health Care Reform Where we’ve been Where we are Where we’re going

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  1. Health Care Reform Where we’ve beenWhere we are Where we’re going

  2. Medicare Inpatient Hospital/ SNF/HHA/Hospice Services PartA Physician/Non- Physician Practitioner/ Ancillary Suppliers/ Outpatient Hospital Services Prescription Drug Coverage PartD PartB PartC Medicare Advantage

  3. The U.S. Spends More on Health Care Than Other Developed Countries

  4. Costs of Doing Nothing % Median Family Income to Purchase Health Insurance 1987 2006 2016 7% 17% 34%

  5. Uninsured Numbers Continue to Grow

  6. Quality – Variations in Care

  7. Federal Government P & L (2012) (in billions)

  8. Medicare Bankrupt 2024 Options- • Reduce Benefits • Increase Taxes • Reduce Payments to Providers • Reduce Utilization

  9. QUALITY TRANSPARENCYACCOUNTABILITYINTEGRATION

  10. Who Decides What Quality Is? CMS 1972- Social Security Act Professional Standards Review Organizations (PSRO) 1982-Tax Equity and Fiscal Responsibility Act (TEFRA) PSROs become PROs 1992- Health Care Quality Improvement Initiative PROs become Quality Improvement Organizations (QIO) Focus on quality rather than cost. Each contract cycle- Revised Scope of Work or Statement of Work (SOW) 1999- Aligned data elements and inclusion/exclusion criteria with JCAHO 2003- voluntary reporting of process measures 2004- reporting tied to hospital payment 2005-Hospital Compare rolled out 2007-public reporting of risk-adjusted hospital mortality rates 2009-American Reinvestment and Recovery Act 2010-Patient Protection and Affordable Care Act

  11. What is VBP? • VBP = Value Based Purchasing • Part of the Patient Protection and Affordable Care Act (PPACA, 2010) • Final rule April 29, 2011 • Designed to reward hospitals with higher quality care • Affects only CMS Medicare payments

  12. What is VBP? (cont.) • Money comes from trimming CMS base operating DRG payments (IPPS add-on payments excluded) to hospitals • FY 2013: 1% • FY 2014: 1.25% • FY 2015: 1.5% • FY 2016: 1.75% • FY 2017: 2% • Money then given back to some hospitals based on performance

  13. The Joint Commission • IPPE • OPPE • FPPE

  14. American Recovery and Reinvestment Act (ARRA) Summary of Legislation Health Care Provisions – Care Delivery Organizations: Federal Medicaid Funding $ 90 Billion Health Insurance – Extension of COBRA for early retirees $ 25 Billion NIH Scientific Research Grants $ 10 Billion HHS Wellness and Prevention Initiatives $ 10 Billion Health Information Technology for Economic and Clinical Health Act (HITECH) $ 23 Billion

  15. Total Potential Physician Payment Impact

  16. Hospital Payments at Risk

  17. “It’s not the strongest species that survives nor the most intelligent but the most adaptable.” Darwin

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